Quiet tradings in the European and Asian markets.. Brent is approaching $70

Quiet tradings in the European and Asian markets.. Brent is approaching $70: Today seems to be relatively quiet in the markets,
amid the continued closure of some Asian exchanges and quiet tradings in Europe.

Oil is witnessing new developments after the US Petroleum Institute data showed a retreating in inventories.

A large jump in oil prices while declining US stocks

Today, Oil prices rose for the third day after industry data indicated that US crude inventories fell much more than expected last week,
boosting upward sentiment regarding fuel demand in the World’s largest economy.

According to Reuters, US West Texas Intermediate crude futures rose 43 cents (0.7%) to record $ 66.12 a barrel.

Prices rose to $ 66.58, the highest level since March 8.

Brent crude futures rose by 49 cents, (0.7%) to record $ 69.37 a barrel after hitting the highest level in more than 7 weeks
at $ 69.78 earlier in the session.

On Tuesday

On Tuesday, both standard contracts rose by 2%.

The rise in prices was driven by the decline in US commercial crude oil inventories,
the world’s largest oil consumer, which reinforced the perception that demand in the country was rising.

According to American Petroleum Institute data

According to American Petroleum Institute data, US commercial crude oil inventories decreased by 7 million and 688,000 barrels.

The market expectations were that stocks would be declined by only 2 million and 191,000 barrels.

Today

Today, official inventory data will be released by the United States Energy Information Administration.

Oil prices are expected to continue to rise if the Energy Information Agency indicates a reduction in inventories.

If the Energy Information Agency confirmed the figures, it would be the biggest weekly drop in official stock data since late January.

Covid-19 virus epidemic in the United States

In addition, the decision to ease measures taken against the new strain of Corona Covid-19 virus epidemic in the United States
and the proposal to lift the current travel restrictions in the states of the European Union for persons who received 2 doses of Covid-19 vaccines
approved by the European Union also contributes to optimistic expectations of oil demand through providing support for higher prices.

The coming summer travel season could boost fuel demand and support oil prices.

Energy demand

Expectations of energy demand, supported by easing procedures of closures in parts of the United States and the United Kingdom,
helped to dispel concerns about lower demand from India and Japan.

This rise in oil prices to the highest levels in almost 2 months was supported
by intensive vaccination campaigns in the United States and Europe.

So far, this led to offsetting the decline in fuel demand in India, the world’s third-largest oil consumer,
which suffers from high Covid-19 infections.

There are continuing concerns about the increasing Covid-19 cases which will negatively affect oil demand in some countries,
particularly India, the world’s third-largest oil consumer, which by its turn help to further suppress prices.

Indian Ministry of Health

According to the statement issued by the Indian Ministry of Health, 382,000 and 315 new cases
of Covid-19 have been monitored during the last 24 hours in the country, as the total number of cases surpassed 20 million.

If a national shutdown is eventually imposed, it would be likely to affect morale, bringing oil to drop again.

Mixed performance for American indicators

On Tuesday, trading in US exchanges ended after a decline at the start of the day,
without single dynamics for the three main indicators which changed in the range of 1.9%.

The biggest decline has emerged in the super-tech sector, as profits continued to be reaped after Finance Minister Yellen’s remarks about the possibility of rising interest rates to prevent the economy from warming.

Later, Yellen confirmed that such recommendations were not made from the Federal Reserve and she did not expect problems with inflation.

The better dynamics of the market in such circumstances were illustrated by the Dow Jones Periodic Industrial Index.

In the morning, futures on the Standard and Poor’s index added about 0.2% as a part of the correction.

Today, the market is waiting for publishing employment data in the private sector next April,
according to ADP data, as well as indicators of business activity in the services sector.

Positive push for DAX index

Investors in the German stock market seem to be wanting to take advantage of low prices the day before midweek.

The DAX index rose by 1.1%in the early dealings and it rose again above the 15, 000 mark.

On Tuesday, increasing fears of inflation pushed back the German stock market.

When Xetra was closed on the previous day, there was a drop of about 2.49% to 14,856 points.

MDAX index fell by 2.65% to record 32,042 points, but it rose again today, just like the DAX index.

Euro Leading EuroStoxx 50 is also positive today.

Negative tradings in Asian stock exchanges

The prevailing mood in stock exchanges in East Asia and Australia was mostly calm today.

Stock exchanges in Japan, mainland China, and South Korea closed on public holidays,
and Hong Kong retreated by about 0.5% during late dealings.

In Singapore, the Times index lost 1.1% at the end of the cycle.

The authorities there tightened communication restrictions to contain the Corona pandemic after the number of cases in the city rose again.

In Malaysia, too, new fears have been raised by another wave of epidemics. As a result,
freedom of movement has been restricted in the wealthier and populous Malaysian state of Selangor.

The KLCI index in Kuala Lumpur declined by 0.3%.

Quiet tradings in the European and Asian markets.. Brent is approaching $70

Related Topics